Church & Dwight

Church & Dwight Co., Inc. (CHD - Snapshot Report) has seen steady analyst forecasts for 2008 earnings of $2.85 per share. Estimates of $3.26 per share for 2009 have also been stable and represent 14% growth over 2008 projections.

Company Description

The company's consumer products business is organized into two segments: Consumer Domestic, which encompasses both household and personal care products, and Consumer International, which primarily consists of personal care products. About 40% of the Company's U.S. consumer products are sold under the ARM & HAMMER brand name and derivative trademarks, such as ARM & HAMMER DENTAL CARE Toothpaste and ARM & HAMMER SUPER SCOOP Clumping Cat Litter.

Upbeat Estimates

Church & Dwight has seen steady analyst forecasts for 2008 earnings of $2.85 per share. Estimates of $3.26 per share for 2009 have also been stable and represent 14% growth over 2008 projections.

The company has an outstanding record of topping analyst estimates over the past 4 years, exceeding all earnings expectations with the exception of 1 quarter, which was a match.

The company's earnings per share are expected to grow by 13% over the next 3 – 5 years, which is more bullish than the industry expectation of 10%.

Growth in the Third Quarter

Third-quarter adjusted earnings per share of 73 cents were ahead of the previous year's 69 cents and topped the consensus estimate by 6%. Net sales jumped 9% on a year-over-year basis.

Management stated that the results reflect continued strong organic revenue growth, an increase in gross margin, tight management of overhead costs and increased marketing spending in support of CHD's major brands.

The company added that its organic revenue growth was driven by price increases, new products and increased distribution on key brands.

“During the quarter we completed our acquisition of the net assets of the Del Pharmaceuticals, Inc. over-the-counter businesses from Coty Inc. and are pleased so far with the business results and the integration process,” said James R. Craigie, Chairman and Chief Executive Officer. “We expect full year 2008 organic revenue growth to exceed our 3% to 4% goal and the increase in gross margin for the full year to exceed our 100 basis point goal."

Solid and Consistent Income

Church & Dwight declared its 431st regular quarterly dividend of 9 cents per share, which was paid out on December 1, 2008.

The company is scheduled to announce results for the fourth quarter on February 10.

Read the full analyst report on CHD